1. What is Compound Interest?

Compound interest is the interest on a deposit calculated based on both the initial principal and the accumulated interest from previous periods. It allows your investment to grow at an accelerating rate over time.

2. How Does the Calculator Work?

The calculator uses the compound interest formula:

Where:

• \( P \) — Principal amount (initial investment in MYR)
• \( R \) — Monthly interest rate (annual rate divided by 12, as decimal)
• \( N \) — Number of compounding periods (months)
• \( A \) — Final amount including interest

Explanation: The formula accounts for monthly compounding, which means interest is calculated each month and added to the principal for the next month's calculation.

3. Importance of FD Investment

Details: Fixed deposits offer a safe investment option with guaranteed returns. They are particularly suitable for conservative investors looking for stable growth of their capital.

4. Using the Calculator

Tips: Enter principal amount in MYR, annual interest rate in percentage, and investment period in years. All values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: What is the minimum deposit for HDFC FD in Malaysia?
A: The minimum deposit amount may vary, but typically starts from MYR 1,000 for HDFC fixed deposits in Malaysia.

Q2: How often is interest compounded?
A: HDFC Bank Malaysia typically compounds interest monthly, which is what this calculator assumes.

Q3: Are there tax implications for FD interest?
A: Yes, interest earned from fixed deposits is usually subject to taxation. Consult a tax advisor for Malaysia-specific regulations.

Q4: Can I withdraw my FD before maturity?
A: Premature withdrawals are usually allowed but may incur penalties or reduced interest rates.

Q5: How does this compare to other investment options?
A: FDs offer lower risk but typically lower returns compared to stocks or mutual funds. They are ideal for capital preservation.